Set-off clauses under scrutiny in Federal Court ruling - Gadens

A Federal Court judgment in proceedings against supermarket giants Coles and Woolworths considered the application of contractual set-off clauses, record-keeping obligations for award-covered employees paid annualised salaries, and agreements between employees and employers to vary entitlements under the relevant modern award. Although an appeal is expected, the ruling currently carries significant implications for how employers structure annual salaries, payroll processes, record-keeping arrangements and the extent to which they can rely on contractual set-off clauses while complying with the Fair Work Act and its respective Regulations.

For more on this judgment and what businesses can do to ensure compliance, please visit Gadens’ website.